Home improvements and VAT

Wibbles

Could someone, in the know - please confirm whether having an accessible kitchen comes under the "relief from VAT" banner - especially when the existing is not wheelchair accessible and also does not allow a wheelchair through to the rear door !!

Washrooms, Bathrooms and Toilets do but Kitchens appears to be a grey area ...

Any advice please

rebel11

https://www.gov.uk/hmrc-internal-manuals/vat-relief-for-disabled-people/vrdp23000#IDAWOO0B

https://www.gov.uk/guidance/vat-relief-on-certain-building-work-if-you-have-a-disability

Wibbles

rebel11 said:

https://www.gov.uk/hmrc-internal-manuals/vat-relief-for-disabled-people/vrdp23000#IDAWOO0B

https://www.gov.uk/guidance/vat-relief-on-certain-building-work-if-you-have-a-disability

So - just because a non-disabled person is also able to make use of a kitchen extension - they deny VAT relief

Strangely - I had a council surveyor out a couple of months ago who told me that if the kitchen had a drop down keysafe on the wall - that made the whole structure eligible for VAT relief !

rebel11

It's all 'bizarre', you could make several arguments, they will no doubt make other arguments. My mum 'shrank' as you do with age / conditions, so could no longer reach the worktop, so would need a worktop lowered, so standard kitchen units would need to be lowered, which you can do with standard kitchen units, but the plinth would also be smaller in height. They would argue that normal people can use the kitchen as it's not specifically designed for her conditions.  

Wibbles

The thing is that in order for us to create a new downstairs toilet (which CLEARLY IS VAT free) we need to create a new kitchen...  
The new toilet will have to go where the existing kitchen is now 

rebel11

From memory HMRC has a helpline regards VAT, you could run it pass them to see if your situation qualifies.

Wibbles

Evidently - I was correct in my assumption that HMRC are arses - They believe that I am entitled to vat free toilet facilities but not kitchen - although the toilet is going where the existing kitchen is.....with a new kitchen in an extension

They claim that ANYONE could use the kitchen so is not vat free - so I asked whether anyone could use the toilet -  their response "Sorry - these are the rules"

So its going to cost me an extra £10k!

Wibbles

I have asked HMRC !

https://www.legislation.gov.uk/ukpga/1996/53/section/23 classes access to a kitchen as being vital for disabled persons

“facilitating the preparation and cooking of food by the disabled occupant” for the purposes of a disabled facilities grant.

At the moment – due to the size of my present kitchen – access is NOT possible by wheelchair

"Disabled people may qualify for disabled facilities grants towards the cost of providing adaptations and facilities in their private residence to enable them to continue living there. Such grants are given by local councils under Part I of the Housing Grants, Construction and Regeneration Act 1996. The council may pay the grant:

• direct to the disabled person; or
• direct to the contractor.

If the grant is paid to the contractor you should check the contractor’s records to ensure that:

• the invoice clearly stated that the work was done for the disabled person; and
• VAT was not charged on zero-rated work."

But according to HMRC's previous reply – a kitchen is classed as NON zero-rated.

Could someone please explain why a Kitchen is rated as NON zero rated when a private individual wants to pay for their own home improvement/extension ?

But zero-rated when an individual is in receipt of a disabled facilities grant – in fact – HMRC rules state to check with the contractor that VAT was NOT charged on the work !!

I am not entitled to a means tested grant – due to having savings of over £16k

Wibbles

Has anybody ever found a solution to this problem ?

ie VAT on vital disabled friendly home improvements, when self funded - but not when covered by a grant ?

AlyaGmail

Nice article

Wibbles

I am still unable to get a definitive reason from HMRC 

OverlyAnxious

I would have thought the reason was simply that the grant comes out of taxes.  So it wouldn't make sense for them to have to pay VAT which is just paying themselves in a loop.

The idea is that if you can afford to pay for the work (so not eligible for the grant) then you would be expected to pay VAT the same as everyone else.

I don't have any confirmation of that, just my own understanding.

Wibbles

OverlyAnxious said:

I would have thought the reason was simply that the grant comes out of taxes.  So it wouldn't make sense for them to have to pay VAT which is just paying themselves in a loop.

The idea is that if you can afford to pay for the work (so not eligible for the grant) then you would be expected to pay VAT the same as everyone else.

I don't have any confirmation of that, just my own understanding.

But not the toilet just the kitchen? 

OverlyAnxious

Wibbles said:

OverlyAnxious said:

I would have thought the reason was simply that the grant comes out of taxes.  So it wouldn't make sense for them to have to pay VAT which is just paying themselves in a loop.

The idea is that if you can afford to pay for the work (so not eligible for the grant) then you would be expected to pay VAT the same as everyone else.

I don't have any confirmation of that, just my own understanding.

But not the toilet just the kitchen? 

Yes.  I don't agree with the rules, but they do seem to be fairly clear that the toilet is specifically accessible but the kitchen would benefit everyone in the property.

Wibbles

OverlyAnxious said:

Wibbles said:

OverlyAnxious said:

I would have thought the reason was simply that the grant comes out of taxes.  So it wouldn't make sense for them to have to pay VAT which is just paying themselves in a loop.

The idea is that if you can afford to pay for the work (so not eligible for the grant) then you would be expected to pay VAT the same as everyone else.

I don't have any confirmation of that, just my own understanding.

But not the toilet just the kitchen? 

Yes.  I don't agree with the rules, but they do seem to be fairly clear that the toilet is specifically accessible but the kitchen would benefit everyone in the property.

No the toilet could be used by anyone as well 
It is a normal toilet

OverlyAnxious

Wibbles said:

OverlyAnxious said:

Wibbles said:

OverlyAnxious said:

I would have thought the reason was simply that the grant comes out of taxes.  So it wouldn't make sense for them to have to pay VAT which is just paying themselves in a loop.

The idea is that if you can afford to pay for the work (so not eligible for the grant) then you would be expected to pay VAT the same as everyone else.

I don't have any confirmation of that, just my own understanding.

But not the toilet just the kitchen? 

Yes.  I don't agree with the rules, but they do seem to be fairly clear that the toilet is specifically accessible but the kitchen would benefit everyone in the property.

No the toilet could be used by anyone as well 
It is a normal toilet

Yes, but it's downstairs.  That's what makes it accessible in this case. 

Although anyone could use it, the main purpose of it is accessibility for yourself.  There will still be another toilet in the property for everyone else to use.

rebel11

There are cases where people have appealed the HMRC decision not to allow a VAT refund. 

That's archived on the HMRC / Gov website.  Might be worth looking on their for a definitive answer.  

Wibbles

OverlyAnxious said:

Wibbles said:

OverlyAnxious said:

Wibbles said:

OverlyAnxious said:

I would have thought the reason was simply that the grant comes out of taxes.  So it wouldn't make sense for them to have to pay VAT which is just paying themselves in a loop.

The idea is that if you can afford to pay for the work (so not eligible for the grant) then you would be expected to pay VAT the same as everyone else.

I don't have any confirmation of that, just my own understanding.

But not the toilet just the kitchen? 

Yes.  I don't agree with the rules, but they do seem to be fairly clear that the toilet is specifically accessible but the kitchen would benefit everyone in the property.

No the toilet could be used by anyone as well 
It is a normal toilet

Yes, but it's downstairs.  That's what makes it accessible in this case. 

Although anyone could use it, the main purpose of it is accessibility for yourself.  There will still be another toilet in the property for everyone else to use.

But most new 3 bed homes come with a downstairs toilet these days anyway 

Wibbles

rebel11 said:

There are cases where people have appealed the HMRC decision not to allow a VAT refund. 

That's archived on the HMRC / Gov website.  Might be worth looking on their for a definitive answer.  

Thanks I will take a look

Wibbles

Here are the plans for our long awaited downstairs bathroom

Any comments ?

poppy123456

Is it just a toilet or a bathroom as well? If it's a bathroom, is this being moved from upstairs to downstairs?